Canadian Home Sales on the Rise Despite High Interest Rates

High interest rates aren’t sending potential homebuyers to the sidelines.

Latest data from the Canadian Real Estate Association shows that national home sales were up 2.3% between January and February, largely led by transactions in the Greater Toronto and Greater Vancouver areas. However, sales were 40% lower compared to February 2022, and are rather now on par with the number of transactions seen for that month in 2018 and 2019.

Monthly home sales (CNW Group/Canadian Real Estate Association)

Meanwhile, the national average home price stood at $662,437, marking an 18.9% drop from the record set in February 2022; still, the average price was up over $50,000 from January, thanks to substantial gains in the GTA and the GVA. “The similarities between 2023 and the recovery year of 2019 continued to emerge in February, with sales up, the market tightening, and month-over-month price declines getting smaller,” said CREA economist Shaun Cathcart.

Altamira Gold Corp. — sponsored Sponsored · Altamira Gold Corp.

The number of newly listed homes fell 7.9% month-over-month in February, causing inventory to decline from 4.2 months in January to 4.1 months— an entire month below the long-run average. “Future sellers, many of whom will also be buyers, are likely biding their time until the optimum time to list and buy something else. For most, that’s in the spring. Will buyers jump off the fence to snap homes up in 2023 once they finally start to hit the market? They did in 2019,” added Cathcart.

Information for this briefing was found via the CREA. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Where Gold Investors Will Make the Biggest Money | Kevin Smith – Crescat Capital

This 100 Year Old Silver Mine Keeps Getting Bigger | Oliver Turner – Americas Gold and Silver

They’re Uncovering an Entire District of Gold | Michael Bennett – Altamira Gold

Recommended

Homeland Nickel Signs Binding Offtake With Westwin for 20,000 Tonnes of Concentrate a Year

Golden Cariboo’s First Quesnelle Resource Estimate Tallies 1.19 Million Gold Equivalent Ounces

Related News

Bank Of Canada Could Raise Interest Rates By 75 Basis Points — Economists

After Canadian inflation soared at a 39-year-record high of 7.7%, most economists believe that the...

Monday, July 11, 2022, 12:38:00 PM

US Jobless Claims Unexpectedly Drop in January

Applications for jobless benefits unexpectedly dropped last week, as US firms remain unwilling to reduce...

Friday, January 20, 2023, 06:22:00 AM

Bank of Canada Hikes Rates 50 Basis-Points, Warns of Further Increases

As a surprise to markets, the Bank of Canada delivered a slightly smaller rate hike,...

Wednesday, October 26, 2022, 10:39:50 AM

Bank of Canada Raises Interest Rates Another 25 Basis Points to 5%

As was widely expected, the Bank of Canada raised its overnight rate by another 25...

Wednesday, July 12, 2023, 10:02:39 AM

Bank of Canada Cuts Interest Rate By 50 Basis Points Again To 3.25%

The Bank of Canada delivered another significant rate cut on Wednesday, lowering its benchmark interest...

Wednesday, December 11, 2024, 10:09:42 AM